Media: China Demands Increased Control over Panama Port Transactions
The Wall Street Journal on December 16 quoted sources saying that China has raised its requirements and is pushing its state-owned shipping company, COSCO Shipping Group, to gain control in a $22.8 billion port transaction. The deal involves two controversial ports located near the Panama Canal.
The report noted that BlackRock, which had previously reached an agreement on the ports, as well as Mediterranean Shipping Company, owned by the Aponte family, had been open to offering equal equity to COSCO Shipping Group.
However, with the new demands from China, the negotiations have now stalled.
President Trump announced in his inaugural speech in February that he intended to control the Panama Canal. In February, U.S. Secretary of State Rubio visited Panama and warned that, given China's growing influence in the region, Trump did not want to maintain the status quo of the Panama Canal.
Under pressure, Hong Kong Cheung Kong (Holdings) announced on March 4 that it planned to sell a series of port assets to a buyer consortium led by BlackRock. The transaction covered 43 port asset interests in 23 countries, including the Cristobal and Balboa ports at the Panama Canal.
Afterward, Cheung Kong reportedly continued negotiations with the consortium to invite a major mainland Chinese investor, COSCO Shipping Group, to participate.
The Chinese Foreign Ministry spokesperson repeatedly emphasized that China has always firmly opposed behaviors that use economic coercion and bullying to infringe upon the legitimate rights and interests of other countries.
Original: toutiao.com/article/1851723434978505/
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